Investing is a learnable skill.
The most important rule about money investment is – You should investigate before you invest. You should give enough time to study any particular investment before you actually invest. Study and analysis are very important as the objective will be to “earn more money” from the investment and not doing just for the sake of investment.
So, to acquire the skills of investing follow some basic rules:
Follow the thumb rule and check details
Investing your money without thinking is like attempting a financial suicide. Never let rush parting with money. You have worked too hard to earn it and its taken too long to accumulate. Investigate every aspect of the investment well before you make any commitment. Ask for full and complete disclosure of every detail. Demand honest, accurate and adequate information on any investment of any kind. If you have any doubt or misgivings at all, you will probably be better off keeping your money in the bank or in a money market investment account than you would be speculating or taking the risk of losing it.
Money is the currency which flows. So easy to lose
A Japanese proverb says, “Making money is like digging with a nail while losing money is like pouring water on the sand.” Money being currency. Currency means which always flows. The money will find a way to get transferred to some other pocket.
SO plan your investments in such a way that you start making money with your hard earned money.
Don’t lose money.
If there is a possibility that you will lose your money, don’t part with it in the first place. There are 2 basic rules for successful investing.
- Don’t lose money.
- Always remember rule no 1 and focus on earning more money.
Be Smart About Investing
If you think you can afford to lose a little, you’re going to end up losing a lot.
Always ask yourself what would happen if you lose one hundred percent of your money in a prospective investment. Could you handle that? If you could not, don’t make the investment in the first place.
As stated earlier, investing is a learnable skill. To learn the art or skills of investing I suggest to follow these 2 actions immediately.
- Think back over the various financial mistakes you have made in your life. What did they have in common? What can you learn from them? Accurate diagnosis is half the cure.
- Invest only in things that you fully understand and believe in. Take investment advice only from people who are financially successful from taking their own advice. Play it safe. It’s better to hold onto your money rather than to take a chance of losing it, along with all the time it took you to earn it.